Trump threatens tariffs if EU doesn’t buy more US oil and gas
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US exports of liquefied natural gas are projected to average 12 billion cu ft per day in 2024.
PHOTO: REUTERS
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WASHINGTON – US President-elect Donald Trump said on Dec 20 the European Union may face tariffs if the bloc does not cut its growing deficit with the United States by making large oil and gas trades with the world’s largest economy.
The EU is already buying the lion’s share of US oil and gas exports, according to US government data, and no additional volumes are currently available unless the US increases output or volumes are rerouted from Asia, another big consumer of US energy.
“I told the European Union that they must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas,” Trump said in a post on Truth Social.
“Otherwise, it is TARIFFS all the way!!!,” he added.
Trump has vowed to impose tariffs on most, if not all, imports, and said Europe would pay a heavy price
Trump, who takes office on Jan 20, has already pledged hefty tariffs
Most European oil refiners and gas firms are private, and the governments have no say on where the purchases are coming from, unless the authorities impose sanctions or tariffs. The owners usually buy their resources based on price and efficiencies.
The EU has steeply increased purchases of US oil and gas following the block’s decision to impose sanctions and cut reliance on Russian energy after Moscow invaded Ukraine in 2022.
The US has grown to become the largest oil producer in recent years, with output of over 20 million barrels per day of oil liquids or a fifth of global demand.
US crude exports to Europe stand at over 2 million barrels per day representing over a half of US total exports, with the rest going to Asia. The Netherlands, Spain, France, Germany, Italy, Denmark, and Sweden are the biggest importers.
The US is also the world’s biggest gas producer and consumer with output of over 103 billion cu ft per day (bcfd).
The US government projects that US exports of liquefied natural gas (LNG) will average 12 bcfd in 2024. In 2023, Europe accounted for 66 per cent of US LNG exports, with Britain, France, Spain and Germany being the main destinations.
The EU had a trade surplus with the rest of the world in October of €3.9 billion (S$5.5 billion), down from €8.4 billion in October 2023.
The EU’s trade with the US, the bloc’s top trading partner, showed an overall surplus of €20.3 billion in October, up from €16.8 billion 12 months earlier.
EU exports are dominated by Germany, with key goods being cars, machinery and chemicals. REUTERS
